In the long run, when a perfectly competitive firm experiences negative economic profits, firms exit the industry, the market supply curve shifts leftward, and the market price rises. Question 32 options: True False

In the long run, when a perfectly competitive firm experiences negative economic profits, firms exit the industry, the market supply curve shifts leftward, and the market price rises. Question 32 options: True False

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter7: Perefect Competition

Section: Chapter Questions

Problem 8SQP

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Question

In the long run, when a perfectly competitive firm experiences negative economic profits, firms exit the industry, the market supply curve shifts leftward, and the market price rises.

Question 32 options:

	True
	False

Defintion Defintion Curve that represents the graphical relationship between the total supply of goods and services and the price level in the economy. When the price level increases, producers tend to supply more of a product in the market to earn a higher revenue or vice versa.

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